 Malcy's extremely bullish take on today deal completion:
"So, the Eco deal with Africa Oil has completed and with it Eco swaps out a 1% stake in Block 3B/4B offshore South Africa to Africa Oil in return for its 16% in Eco which will now be cancelled. Eco remains with a still meaningful 5.25% in the play which is amongst the hottest in the area and which Total will be drilling this year.
I understand that Total is extremely bullish about the area and it is very high on its list of prospects worldwide and hence why it is imminent, the drilling programme is bristling with potential excitement and opportunity to move fast upon success.
Eco are poised, with the removal from their shareholder register of Africa Oil’s 16% and thus cancelled, to create uber value in its equity. To me it looks like a very smart, elegant and substantial buy-back and what is more the entire market cap is now the interest in 3B/4B, plus a massively exciting portfolio elsewhere which has huge upside and now has created much more value for shareholders after the share reduction.
As part of this deal Africa Oil lose their appointee to the Eco board and he is replaced by Emily Ferguson who is somewhat of a legend in the E&P industry. Recently with TotalEnergies she has what seems like a passionate following in particular some key leadership roles and has stood out as a mentor, leader and communicator, I’m sure she will be a great addition to the Eco board.
Eco will undoubtedly remain in the upcoming bucket List but I need to do some work on the Target Price which could and should be a very big number, this deal nails on value for shareholders, keeps Eco in possibly the best post code in the world right now and don’t forget its acreage in Block 1 in South Africa, Namibia and at Orinduik, indeed much excitement to come for Eco shareholders." |
I was thinking about that this morning, hopefully planned with follow-up news to swiftly follow. |
It was important to get the latest deal done to reduce the shares in issue by 16% prior to a farm-out of Orinduik or the Walvis Basin to maximise their impact. Anyone believe it was planned this way, or is it just fate ? |
Nearly at double the average volume today |
Completed the accretive $aoi transactionStake in 3B4B reduced by 16% and number of shares reduced by the same amountWhich means you get more interest in the other licences for freeFirst catalyst now results of Sagittarius 1x from rhino resourcesWhich could be coming soon as it s spudded on the 19th of DecPel 85 sits very close to the pizza sliced block 1 owned by $eco.lSo a discovery could provide some kick hereEven though $shell declared their finds non commercial |
https://www.proactiveinvestors.co.uk/companies/news/1064154/eco-atlantic-oil-gas-ceo-outlines-benefits-of-africa-oil-transaction-for-company-and-shareholders-1064154.html |
https://www.upstreamonline.com/exploration/africa-oil-boosts-stake-in-orange-basin-block-ahead-of-south-africa-wildcat/2-1-1763432?utm_campaign=2025-01-13T10%3A14%3A00.705Z&utm_content=%5Bnews%2C+south_africa%2C+africa%2C+africa_oil%2C+exploration%2C+sub_saharan_africa%2C+eco_atlantic%2C+i_esau%2C+orange_basin%5D&utm_medium=email&utm_source=alert&utm_term=%5BTOPIC%2C+AUTHOR%5D |
Hopefully it will now be a busy year for ECO looks value from here |
We are now looking forward to a busy year for the Company across our entire portfolio and to progressing our respective farm out and drilling workstreams" |
You can on hL |
Can't buy a bean online |
Looks like the 5.25% they have retained is worth about same as market cap. All other assets ECO hold are now in for free. Looks amazing value at 12.5 |
Sensational deal. Read through value for their remaining stake in 3B/4B is the MC. Everything else in for free. Broker target is 125p |
Stunning deal - what a buyback |
Come On Gil get the Orinduik farm-out over the line ! |
https://energychamber.org/namibia-shell-write-down-merely-a-speed-bump-not-a-road-block/ |
Gil has already said the money ECO have will last years as they intend to be carried for any well drilling, so only need money to keep the lights on and day to day expenses. |
What sort of cash position now ? thinkIt was around 7million in september 2024, waiting on another 11 million to come in.Cant be too much big over heads |
I think ECO is good value still, with farm outs on Orinduik & Walvis Basin to come and drilling close to ECO blocks happening over the next few months. I would guess we should also should get some idea of timelines for drilling 3b/4b in the next few months from Total.
All exciting should Gil get 1 or both farm=outs sorted out. |
The thing is, we have the Noble Venturer drilling as we speak in a nearby block [but in Namibia] and they must be coming very close to knowing what is down there.
A successful drill will de-risk Block 1,a little. |
Does any one feel the mcap is toppy? Looking for debate not fudding ECO.Gils time scales are well of from the presentation last march and hes been awfully quiet |
Ticking up, little by little, day by day. |
It looks mouthwatering, I'm very surprised no one has commented about the JHI holding... |
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